IBERSOL | Integrated Management Report - 2024

Consolidated Financial Statements 8.2. Bank Debt Accounting policies Borrowings are recorded under liabilities at the nominal value received, net of issue costs, which corresponds to their respective fair value on that date. Subsequently, they are measured using the amortized cost method, with the corresponding financial charges calculated in accordance with the effective interest rate. The effective interest rate is the rate that discounts future payments over the expect- ed life of the financial instrument to the net carrying amount of the financial liability. As at 31 December 2024 and 2023 current and non-current borrowings had the fol- lowing detail: dec/2024 dec/2023 Non-current Bank loans 13 221 336 7 863 527 Commercial paper - 4 800 000 13 221 336 12 663 527 Current Bank overdrafts 1 300 340 - Bank loans 4 605 304 4 110 369 Commercial paper 9 834 000 11 680 148 15 739 644 15 790 517 Total borrowings 28 960 979 28 454 044 Average cost 5,0% 2,6% The increase in the average cost is due to the entry of NRS with a higher financing cost than the Group. In December these contracts were repaid and canceled. The maturity of non-current bank borrowings and commercial paper is as follows: dec/2024 dec/2023 between 1 and 2 years 7 350 224 11 477 304 between 2 and 5 years 5 871 112 1 186 222 > 5 years - - Total non current borrowings 13 221 336 12 663 527 For Commercial Paper Programs (CPP), when there is a termination date, we consider maturity on that date, regardless of the terms for which they are contracted. There are commercial paper financing agreements that include cross default clauses. Such clauses refer to contractual non-compliance in other contracts or tax non- compliance, in which case it does not occur. 434